Destiny Media Achieves First Operating Profit From Doubling of Play MPE® Revenues
VANCOUVER, British Columbia, July 14 -- Destiny Media Technologies (OTC Bulletin Board: DSNY), the global leader in the secure distribution of pre-release music to radio and provider of instant play streaming media, is pleased to announce that third quarter revenues grew by 42% from the previous quarter (80% over the third quarter in fiscal 2008) on the strength of better than anticipated revenue for its Play MPE® system. During the quarter the Company became profitable and realized positive cash flow from operations. Play MPE® revenue grew by 114% from the same quarter in the prior year.
“The Company has ‘crossed the chasm’ into profitability and we expect revenues, income and positive cash flow to continue to grow into the foreseeable future”, commented Destiny CFO, Fred Vandenberg. “We have experienced 17% compounded quarter over quarter revenue growth over the past eleven quarters which has resulted in income from operations. We project revenue to continue to rise in our fourth quarter leading to a conservatively estimated 30% increase in net income and to realize a profit for the year ended August 31, 2009.”
According to Destiny CEO, Steve Vestergaard, “We have worked closely with the record labels to build a system that works well with their internal business processes and they are comfortable relying on our system as they phase out physical CD’s completely. We expect our profits from Play MPE® business to grow into the foreseeable future as the labels expand usage internally and we expand internationally. In addition, we expect to layer in new revenue streams for Clipstream® products that will begin rolling out in Q1 of next year.”
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in United States dollars)
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
May 31, May 31, May 31, May 31,
2009 2008 2009 2008
$ $ $ $
Revenue 665,829 369,098 1,687,878 1,085,555
General and administrative 181,749 206,646 540,654 838,385
Sales and marketing 193,044 323,330 634,256 1,244,920
Research and development 206,559 335,540 652,823 1,120,829
Amortization 10,675 11,781 27,407 33,326
592,027 877,297 1,855,140 3,237,460
Income (loss) from operations 73,802 (508,199) (167,262) (2,151,905)
Other income (expenses)
Other income 12,755 31,384 72,877 73,499
Interest income 1,858 492 2,964 15,451
Interest and other expense (942) (9,237) (2,531) (18,480)
Settlement gain 15,008 — 15,008 —
Net income (loss) 102,481 (485,560) (78,944) (2,081,435)
About Destiny Media Technologies
Destiny (www.dsny.com) provides technical solutions which facilitate the transfer of various forms of media across the internet. Our solutions make this process more secure and more efficient. From our proprietary technologies we have developed two main product lines. Our products include the Play MPE™ System (www.plaympe.com), and Clipstream® (www.clipstreamaudio.com) and video (www.clipstream.com).
CFO Destiny Media Technologies, Inc.
604 609 7736 x236
Safe Harbor Statement:
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.